Investment follows demand in the tech industry

In the tech industry, geopolitical situations may worsen before improving, particularly in the hardware sector, such as chips. There is an observation related to induced demand where supply and demand influence each other. As demand for technology rises, investors and capitalists eagerly invest where the money flows. This trend was seen in the solar industry where initial skepticism evolved into significant investment, leading to a decrease in solar panel prices. The same pattern may occur in the chip industry over the next few years as increased demand will attract investments and drive economies of scale.